Oktex Pipeline Company
Original Volume No. 1
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Effective Date: 04/15/2002, Docket: RP01-183-001, Status: Effective
Substitute Original Sheet No. 40H Substitute Original Sheet No. 40H : Effective
Superseding: Original Sheet No. 40H
(a) A Shipper may segment its firm capacity to the extent operationally feasible. In
addition, any Shipper may segment its firm capacity in releasing to a Replacement
Shipper to the extent operationally feasible. A Shipper segmenting its own firm
capacity shall effectuate such segmentation through the nomination process under
this Section. A Shipper may release firm capacity on a segmented basis to the extent
consistent with this Section by following the procedures set out in Section XXXIII
of these General Terms and Conditions.
(b) For the purposes of this Section, a segmentation of firm capacity (whether of
Shipper's own capacity or on release)shall be deemed operationally feasible unless:
(i) the segmentation would result in an increase in firm contractual obligation by
Transporter on any segment or portion of its system; or (ii) the segmentation would
result in a physical haul in a direction opposite to the primary path under the
Agreement being segmented, absent a determination by Transporter that it can
physically perform the segmentation as requested; (iii) transportation obligation on
a segment of pipe with respect to which the transporter is not otherwise obligated
to provide transportation service to the shipper requesting segmentation of
capacity. Transporter will communicate its determination under (ii) above within
two (2) hours after the Shipper requests such segmentation.
(c) In the event a path is segmented, the secondary points upstream or
downstream shall be equally available to each Shipper so long as the combined
nominations of the releasing and replacement shipper do not exceed original
(d) The direction of flow for path segments must be the same direction of flow
for the original path. The Shipper (or Replacement Shipper in the case of a
release) may nominate service at Receipt and Delivery Points for the path
segment that results in a reverse flow from the original path; however, a
physical forward-haul will be subject to maximum forward-haul rates if the
original path is physically a backhaul, unless otherwise agreed to in writing.
Subject to available capacity, forwardhauls and back-hauls to the same point on
a transportation path will be permitted If a discount applies to the original
point, the discount will continue to be applied to the extent a similarly
situated shipper is receiving a discount at the alternate point, Transporter
will respond to any requests for a discount within (2) days of such request.
(e) Subject to the availability of firm capacity at the primary point(s), unless
Transporter determines that it is not operationally feasible. The new primary
point(s) must be within the original primary path of the Agreement if it is all
within the same discrete pipeline. Transporter shall not be obligated to reserve
firm capacity to reinstate the former primary points upon expiration of the
segmentation or the capacity release if such firm capacity has been contracted
for by another party.
(f).Transporter will afford a higher priority for mainline capacity to shippers
seeking to use mainline capacity outside of their path, unless Transporter can
demonstrate that such priority is operationally infeasible or leads to anti-
competitive outcomes on its system.